Question 1

In a process-costing system,manufacturing costs are accumulated by:

Accepted Answer

A) batch. 
B) batch and time period. 
C) department. 
D) department and time perioD. 
E) department or process,and time period. 
A) batch. 
B) batch and time period. 
C) department. 
D) department and time perioD. 
E) department or process,and time period.

Question 2

Which of the following statements about operation costing is (are)true?
I.Conversion costs are accumulated by department.
II.Direct material costs are accumulated by batch.
III.Operation costing is a hybrid product-costing system.

Accepted Answer

A) I only. 
B) I and II. 
C) I and III. 
D) II and III. 
E) I,II,and III. 
A) I only. 
B) I and II. 
C) I and III. 
D) II and III. 
E) I,II,and III.

Question 3

Gilberto adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing.Consider the data that follow.  
Conversion cost in the beginning work-in-process inventory totaled $120,000,and August conversion cost totaled $270,000.Assuming use of the weighted-average method,which of the following choices correctly depicts the number of equivalent units for materials and the conversion cost per equivalent unit?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 4

Which of the following choices correctly shows how costs are accumulated in a process-costing system?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 5

Ohio,Inc. ,which uses a process-cost accounting system,began operations on January 1 of the current year.The company incurs conversion cost evenly throughout manufacturing.If Ohio started work on 3,000 units during the period and these units were 70% of the way through manufacturing,it would be correct to say that the company has:

Accepted Answer

A) 3,000 physical units in production. 
B) 2,100 completed units. 
C) 900 in-process units. 
D) 900 equivalent units of production. 
E) 3,000 equivalent units of production. 
A) 3,000 physical units in production. 
B) 2,100 completed units. 
C) 900 in-process units. 
D) 900 equivalent units of production. 
E) 3,000 equivalent units of production.

Question 6

On May 1,Dawdle Company had a work-in-process inventory of 10,000 units.The units were 100% complete for material and 30% complete for conversion,with respective costs of $30,000 and $1,850.
During the month,150,000 units were completed and transferred to finished goods.The May 31 ending work-in-process inventory consisted of 10,000 units that were 100% complete with respect to materials and 80% complete with respect to conversion.
Costs added during the month were $330,000 for materials and $503,750 for conversion.
Required:
Using the weighted-average method,calculate:
A.total equivalent units for material and conversion.
B.the cost per equivalent unit for material and conversion.
C.the cost transferred to finished goods.
D.the cost of ending work in process.

Accepted Answer

The answer of On May 1,Dawdle Company had a work-in-process...

Question 7

Xin Co. ,had 3,000 units of work in process on April 1 that were 60% complete.During April,10,000 units were completed and as of April 30,4,000 units that were 40% complete remained in production.How many units were started during April?

Accepted Answer

A) 8,600. 
B) 9,800. 
C) 11,000. 
D) 12,200. 
E) None of thesE. 
A) 8,600. 
B) 9,800. 
C) 11,000. 
D) 12,200. 
E) None of thesE.

Question 8

Using the weighted-average method of process costing,the cost per unit of conversion activity is:

Accepted Answer

A) $2.50. 
B) $2.53. 
C) $2.70. 
D) $2.76. 
E) some other amount. 
A) $2.50. 
B) $2.53. 
C) $2.70. 
D) $2.76. 
E) some other amount.

Question 9

Peach Company uses a weighted-average process-costing system.Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end,20% complete.Conversion costs associated with the beginning work-in-process inventory amounted to $231,000,and amounts that relate to the current month totaled $966,000.If conversion is incurred uniformly throughout manufacturing,Peach's equivalent-unit cost is:

Accepted Answer

A) $23.00. 
B) $23.94. 
C) $24.15. 
D) $28.50. 
E) some other amount. 
A) $23.00. 
B) $23.94. 
C) $24.15. 
D) $28.50. 
E) some other amount.

Question 10

Using the weighted-average method of process costing,the equivalent units of conversion activity total:

Accepted Answer

A) 60,400. 
B) 68,000. 
C) 69,400. 
D) 74,000. 
E) some other amount. 
A) 60,400. 
B) 68,000. 
C) 69,400. 
D) 74,000. 
E) some other amount.

Question 11

The equivalent units of direct materials for April total:

Accepted Answer

A) 9,000. 
B) 13,000. 
C) 13,600. 
D) 14,400. 
E) 15,000. 
A) 9,000. 
B) 13,000. 
C) 13,600. 
D) 14,400. 
E) 15,000.

Question 12

Willingham uses a process-costing system for its single product,which is manufactured from Material X and Material Y.X and Y are introduced to the product as follows:
Material X: Added at the beginning of manufacturing
Material Y: Added at the 75% stage of completion
The company started and completed 40,000 units during the period,and had an ending work-in-process inventory amounting to 8,000 units,20% complete.Which of the following choices correctly expresses the total equivalent units of production for Material X and Material Y?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 13

When determining the cost of a manufactured good under an operation-costing system,a company would:

Accepted Answer

A) trace direct-material cost and actual conversion cost to each product produced. 
B) trace direct-material cost to each product produced and use a predetermined application rate for conversion cost. 
C) trace actual conversion cost to each product produced and use a predetermined application rate for direct material. 
D) use a predetermined application rate for both direct-material cost and conversion cost. 
E) often switch to a job-costing system to simplify recordkeeping procedures. 
A) trace direct-material cost and actual conversion cost to each product produced. 
B) trace direct-material cost to each product produced and use a predetermined application rate for conversion cost. 
C) trace actual conversion cost to each product produced and use a predetermined application rate for direct material. 
D) use a predetermined application rate for both direct-material cost and conversion cost. 
E) often switch to a job-costing system to simplify recordkeeping procedures.

Question 14

EnviroSmart Chemical Company refines a variety of petrochemical products.The following data pertain to the firm's Baton Rouge plant:

Accepted Answer

@#IMG-DLM& 
Required:
Compute

Question 15

Corruption,Inc.overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory.What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured,respectively?

Accepted Answer

A) Overstated,overstated. 
B) Overstated,understated. 
C) Overstated,none. 
D) None,overstateD. 
E) None,nonE. 
A) Overstated,overstated. 
B) Overstated,understated. 
C) Overstated,none. 
D) None,overstateD. 
E) None,nonE.

Question 16

Which of the following statements is false?

Accepted Answer

A) In job-order costing,costs are accumulated by job order. 
B) In process costing,costs are accumulated by department. 
C) In process costing,the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity. 
D) In process costing,the total cost of each unit is found by dividing the total factory costs by the number of units completeD. 
E) In job-order costing,the unit cost is found by dividing the job's total cost by the job's total units. 
A) In job-order costing,costs are accumulated by job order. 
B) In process costing,costs are accumulated by department. 
C) In process costing,the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity. 
D) In process costing,the total cost of each unit is found by dividing the total factory costs by the number of units completeD. 
E) In job-order costing,the unit cost is found by dividing the job's total cost by the job's total units.

Question 17

A considerable portion of the text's process-costing presentation illustrated the proper way to allocate manufacturing costs to the units completed during the period and the ending work-in-process inventory.For companies that have a single manufacturing department,the journal entry to recognize completed production involves a debit to Finished-Goods Inventory and a credit to Work-in-Process Inventory.What journal entry,if any,is needed for these same companies to properly account for ending work in process?

Accepted Answer

No journal entry is needed.The cost of t

Question 18

Operation costing is a popular type of accounting system,one that combines selected features of job-order and process-cost accounting.
Required:
A.Briefly discuss the basic features that are associated with an operation-costing system.
A.Operation costing is used by firms that produce different models of similar products.The products go through essentially the same manufacturing process,so conversion costs can be assigned in a manner similar to that used in process-costing systems.Materials,on the other hand,are unique to the individual goods being produced and,accordingly,the cost is assigned by batch (or in a manner similar to that used in job costing).
B.A sweater manufacturer produces multiple versions of its single product: sweaters.The garments likely incur roughly the same labor and overhead cost,with the major difference among models being in the areas of fabric,color,and patterns (i.e. ,materials).Thus,the material cost will often differ and the manufacturer should take these differences into account,not spread costs equally over all units produced as would be done in a process-cost-type of procedure.
B.Explain why a sweater manufacturer may have a need for an operation-costing system.

Accepted Answer

A.Operation costing is used by firms tha

In a process-costing system,manufacturing costs are accumulated by:

Which of the following statements about operation costing is (are)true? I.Conversion costs are accumulated by department. II.Direct material costs are accumulated by batch. III.Operation costing is a hybrid product-costing system.

Which of the following choices correctly shows how costs are accumulated in a process-costing system?

Xin Co. ,had 3,000 units of work in process on April 1 that were 60% complete.During April,10,000 units were completed and as of April 30,4,000 units that were 40% complete remained in production.How many units were started during April?

Using the weighted-average method of process costing,the cost per unit of conversion activity is:

Using the weighted-average method of process costing,the equivalent units of conversion activity total:

The equivalent units of direct materials for April total:

When determining the cost of a manufactured good under an operation-costing system,a company would:

EnviroSmart Chemical Company refines a variety of petrochemical products.The following data pertain to the firm's Baton Rouge plant:

Corruption,Inc.overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory.What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured,respectively?

Which of the following statements is false?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 4: Process Costing and Hybrid Product-Costing Systems

In a process-costing system,manufacturing costs are accumulated by:

Which of the following statements about operation costing is (are)true? I.Conversion costs are accumulated by department. II.Direct material costs are accumulated by batch. III.Operation costing is a hybrid product-costing system.

Which of the following choices correctly shows how costs are accumulated in a process-costing system?

Xin Co. ,had 3,000 units of work in process on April 1 that were 60% complete.During April,10,000 units were completed and as of April 30,4,000 units that were 40% complete remained in production.How many units were started during April?

Using the weighted-average method of process costing,the cost per unit of conversion activity is:

Using the weighted-average method of process costing,the equivalent units of conversion activity total:

The equivalent units of direct materials for April total:

When determining the cost of a manufactured good under an operation-costing system,a company would:

EnviroSmart Chemical Company refines a variety of petrochemical products.The following data pertain to the firm's Baton Rouge plant:

Corruption,Inc.overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory.What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured,respectively?

Which of the following statements is false?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Product Costing and Cost Accumulation in a Batch Production Environment

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters